Glossary

A latent defect is one that is concealed or inactive and cannot be discovered by ordinary examination.

A lateral hire is an attorney who enters the law firm, typically from another law firm, at the same level as they were in their old firm.

Laundry listing is the reporting of all possible claims (or incidents that could later produce claims) to an insurer under a claims-made policy that is about to expire, be canceled, or be nonrenewed.

Lawyers professional liability coverage provides attorneys with liability coverage for financial loss suffered by third parties arising from acts, errors, and omissions in providing professional legal services.

A law clerk is someone who is either in law school and an intern at a law firm or a law school graduate awaiting bar results and employed by a law firm. A law clerk might also provide assistance to a judge or magistrate.

Law enforcement officers liablity provides errors and omissions (E&O) coverage for police departments.

The law of large numbers is a statistical axiom that states that the larger the number of exposure units independently exposed to loss, the greater the probability that actual loss experience will equal expected loss experience.

Lay-up occurs when a vessel is moored in a protected anchorage with its operating systems shut down and safeguards in place to ensure that the vessel is protected from deterioration and corrosion.

Lay-up warranty is a provision in yacht policies that stipulates periods of time when the yacht will be laid up in port and not in operation.

Layer refers to a horizontal segment of the liability insured—for example, the second $100,000 of a $500,000 liability is the first layer if the cedent retains $100,000 but a higher layer if it retains a lesser amount.